Forward loan
A forward loan is an annuity loan as part of real estate financing that is only paid out to the borrower after a certain lead time - up to sixty months after signing the contract. The period between the conclusion of the contract and the selected start of the term is known as the forward period. There is no loan or commitment interest on the loan during the forward period .
A forward loan is taken out by the borrower if he wants to secure a certain interest rate for the future at the time the loan agreement is signed . The most common use of forward loans is for follow -up financing .
The borrower “buys” the interest rate security of the forward loan with an interest premium. According to a study by Stiftung Warentest , this interest premium for a forward loan with a ten-year fixed interest rate and a forward period of three years is on average 0.58 percentage points (as of 2015) compared to a loan with immediate disbursement. The amount of the respective interest surcharge depends on the length of the forward period and the current interest rate structure .
The forward loan was developed in 1996 by Dr. Klein & Co. AG for the financing of municipal and non-profit housing companies . There were first offers for consumers in 1998. Today it is a frequently used financing instrument in real estate financing.
A distinction is made between a real and a fake forward loan. In the case of a real forward loan, the fixed interest period only begins on the day the loan is paid out, while in the case of a fake forward loan, the fixed interest period begins immediately.
Risks of a Forward Loan
With a forward loan, the borrower secures the current interest rate until the end of the forward period in return for a surcharge. This usually happens in anticipation of rising lending rates. If the interest rate does not increase as expected by the borrower when the contract was concluded, but rather decrease, the borrower must still take the forward loan. Follow-up financing at the then lower market interest rates is no longer possible.
If the borrower does not take out the forward loan because of this, the bank will demand compensation: the non-acceptance compensation .
Individual evidence
- ↑ Follow-up loans in the test of the Stiftung Warentest In: Finanztest 05/2015, pp. 38–43 and test.de from April 14, 2015.
- ↑ FinancesEuro, edition 01/07
- ↑ Capital , issue 37/1998, page 125